Grand County dserves credit for instituting local preference policy
July 16, 2008
To the Editor:
I applaud the County Commissioners for making official the 5 percent bid preference to local bidders. There are also many businesses, such as Grand Mountain Bank, who has a locals’ preference list for their new building in Fraser. One Denver-area contractor states that we would be paying more out of our local taxes or general fund when the county awards an extra 5 percent to the project. This may be true, but it’s not the complete picture because that 5 percent and more is returned to the community.
Statistics show that for every dollar spent with a local business or contractor, that dollar is then spent an average of six more times at other local businesses. For example, if a local contractor is awarded a $1 million dollar contract that translates into $6 million dollars for the local economy as the wages and goods purchased here are generally spent several times over. What happens is Joe takes the dollar and spends it at Sam’s store, who then spends it with Bill’s repair, who then spends it with Tom’s insurance, etc., etc. This is what makes the local economy thrive.
An out of area business not only takes their profit away from the area but also most of the costs for their overhead ” rent, office or owners salaries, insurance, maintenance, utilities, etc. No doubt some locals are hired by the non-local contractor and some materials are bought here, which keeps some of those dollars here. But, they will almost always take all of their profit and overhead away, which when totaled will be substantially more than the 5 percent local preference, plus we lose the six-fold on every dollar.
When you go to a big box store in Denver or make a purchase online for office supplies, cell phones, hardware, jeans, or whatever it is, you also take your dollars away from your local economy. Plus, your community loses out on the sales tax. So when there are potholes not being filled or the snow is not being removed fast enough, don’t complain about it.
The other complaint one may have is goods cost more here than in Denver or online. In some cases that may be true. But, did you stop to consider that if more people spent their dollars here the local price will be more competitive or even lower? A lot of people think local business first. If everyone did, think how much better our local economy would be.